Lynch Group (LGL AU): 21st November Vote On TPG's Offer

• Back on the 20th August, Lynch Group (LGL AU), an integrated wholesale floral play, entered into a Scheme with Hasfarm Holdings and Darwin Aus Bidco - both are TPG entities.

• TPG offered A$2.245/share, a 28.3% premium to last close, including a A$0.09/share fully franked dividend. 38.5% of shareholders were supportive. TPG held a call option for 19.9% of shares out.

• The Scheme Booklet is now out, with a Scheme Meeting on the 21st November, and expected implementation on the 9th December. The IE (KPMG) says “fair & reasonable”. Clean deal.

Lynch is a super illiquid stock. If that’s not your bag, look away now.

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The Trade:

• Straightforward deal.

• Trading super tight at 0.7%/5.3% gross/annualised spread.

• Unless in, I’d look elsewhere.

• If small, illiquid arbs are your bent, look to enter on any weakness.

This insight is labelled bullish as I expect the Offer to get up.